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1. THE JUTE AND JUTE TEXTILE INDUSTRY
The Jute industry occupies an important place in the national economy of India. It is one of the
major industries in the eastern region, particularly in West Bengal. Jute, the golden fibre, meets all thestandards for ‗safe‘ packaging in view of being a natural, renewable, biodegradable and eco-friendly
product. It is estimated that that the jute industry provides direct employment to 0.37 million workers
in organized mills and in diversified units including tertiary sector and allied activities and supports the
livelihood of around 4.0 million farm families. In addition there are a large number of persons engaged
in the trade of jute.
Jute, the golden fibre, meets all the standards for ‗safe‘ packaging in view of being a natural,
renewable, biodegradable and eco-friendly product. The principal varieties of jute in India are tossa
(Corchorus Olitorious) and white jute (Corchorus Capsularis). Though jute plant is known principally
for its versatile fibre, every part of the plant has its use. The tender leaves are cooked and consumed as
vegetables. The leaves which fall off the plant enrich the soil, about 1 MT of dry matter is put back into the soil and about 3 MT of roots remain per acre of land. The stick which remains after jute fibre
is extracted is used as a domestic fuel and also as a cheap building material. The plant itself has a very
high carbon dioxide assimilation ability; in the 120 days of its growing period, an acre of jute absorbs
about 6 MT of carbon dioxide form atmosphere and releases 4.4 MT of oxygen; several times higher
than trees. Apart from the versatility of the jute plant, the plant compares very favourably in terms of
its ecological footprint when compared with synthetic packaging materials.
As on date, there are 94 composite jute mills out of which the state of West Bengal has 70 jute
mills with Andhra Pradesh having 10 mills, Uttar Pradesh 3 mills, Bihar 3 mills, Orissa 3 mills, Assam
2 mills, Chhattisgarh 2 mills and Tripura 1 Jute Mill. As on 31.08.2015, 26 mills are closed.
According to the closure notices issued by the managements, the principal reasons for the closure of mills are labour indiscipline, absenteeism and trade unionism.
The total number of looms installed in jute industry stood at 51374 consisting of 17990 Hessian
looms, 28381 Sacking looms, 919 Carpet Backing Cloth (CBC) and others at 4084. The installed
spindles in jute mills other than 100 % export oriented units were 772058 comprising of 632914 fine
spindles & 139144 coarse spindles. The maximum installed capacity in jute mills other than 100 %
export oriented units (on the basis of 305 working days per year) is estimated to be 2789 thousand
tonnes per annum.
2. RAW JUTE SCENARIO
Raw jute crop is an important cash crop to the farmers. Cultivation of raw jute crop provides
not only fibre which has industrial use, but jute stick which is used as fuel and building material by the
farming community.
There is always significant fluctuation in the area under jute cultivation in India. The year to
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year fluctuations arise out of three factors namely, (i) fluctuation in rainfall during the sowing season,(ii) the average raw jute prices realized during the previous jute season, and (iii) the returns realized
from competing crops during the previous season. A significant area under jute competes with paddy
during the same season. Hence, year to year fluctuations in the prices of jute relative to the prices of
paddy would generally influence the relative allocation of land between the two crops.
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Raw jute is produced mainly in the state of West Bengal, Bihar, Assam, Orissa, Andhra
Pradesh, Tripura and Meghalaya. The following table will indicate the supply demand position of raw
jute including mesta for the period from 2014-15 to 2015-16 (Estimated):-
(Quantity : In lakh bales of 180 KG of each bale)
2014-15 2015-16
(Estimated)
(A)SUPPLY
i) Opening stock 24.00 15.00
ii) Jute and Mesta crop 72.00 80.00
iii)Import 1.00 5.00
Total : 97.00 100.00
(B)DISTRIBUTION
iv)Mill consumption 70.00 80.00
v)Domestic/industrial consumption 12.00 20.00
vi)Export NIL NILTotal: 82.00 100.00
(C)CLOSING STOCK 15.00 0.00
Source: Jute Advisory Board
The current varieties/grade composition of National Raw Jute Production vis-a-vis the targeted
grade composition are given below:
Grade/Variety wise break-up
Grade Target of TD
Grade
Currently produced
Tossa
(78%)
White
(10%)
Grades Mesta
(7%)
Grades Bimli (5%)
1&2 3% 2% 1%
3 12% 9% 5%
4 35% 25% 15% M2 2% SMID 2%
5 33% 33% 28% M3 10% MID 10%
6 12% 16% 34% M4 38% BOT 38%
7 4% 11% 12% M5 45% BBOT 45%
8 1% 4% 5% M6 5% XBOT 5%
Total 100% 100% 100% 100% 100%
The above grade composition of raw jute is presently weighed in favour of grades lower than
TD-4. With changing pattern of production of jute goods and greater emphasis on promotion of diversified jute products, production of grade 3 & 4 would need to be stepped up. For colour and
quality of certain products, India still relies on imports from Bangladesh for production of diversified
products.
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3. MINIMUM SUPPORT PRICE (MSP) FOR RAW JUTE AND MESTA
Minimum Support Price for raw jute and mesta is fixed every year to protect the interest of
farmers. While fixing prices of different grades, the issue of discouraging production of lower grade
jute and encouraging production of higher grades jute are taken into consideration so as to motivate
farmers to produce higher grade jute.
Jute Corporation of India (JCI) is the Price Support Agency of the Govt. of India for jute. It was
set up in 1971 primarily to protect the interest of the Jute Growers through procurement of Raw Jute
under the MSP fixed by the Govt. of India from time to time and also to stabilize the raw jute market
for the benefit of the jute farmers and the jute economy as a whole. JCI is conducting MSP operation
as and when required. Raw jute is transacted in over 500 centres countywide. Presently, JCI is
operating only at 171 Departmental Purchase Centres. Co-operatives operate at about 40 centres. JCI in
turn purchases the jute procured by these Co-operatives. Government of India provides a subsidy of
approximately Rs.55 crores per year to enable JCI to maintain the infrastructure and manpower for
meeting the requirements of MSP operations. Raw jute purchased by JCI in association with the State
Co-operatives during the last several years is given below:-
Year Commercial Procurement MSP Procurement Total
Lakh Bales Rs. Crore Lakh Bales Rs. Crore Lakh Bales Rs. Crore
2010-11 0.34 19.93 - - 0.34 19.93
2011-12 0.25 9.72 1.31 37.98 1.56 47.70
2012-13 0.44 20.00 3.19 120.18 3.63 140.18
2013-14 0.52 24.50 1.38 53.91 1.90 78.41
2014-15 0.377 0.155 0.532
The minimum support price is fixed by the Govt. on the basis of recommendations of the
Commission for Agricultural Costs and Prices (CACP). As per CACP reports, while formulating the
agricultural price policy CACP takes into account various factors such as cost of production, overalldemand/supply situation, domestic and international prices and effect of minimum support price on
general price level. CACP every year also conducts meetings of all stake holders to decide minimum
support price. The MSP announced by Govt. of India during the last three years are given below:-
Year MSP of TD-5 grade of raw jute Ex- Assam
(Rs./Quintal)
%age increase
over previous year
2013-14 2300 4.5
2014-15 2400 4.3
2015-16 2700 12.5
The procurement of jute under MSP is contingent upon the prices prevailing in the market for raw jute at any point of time. In addition, it is often seen that it may be more remunerative for farmers
to sell directly to traders/manufacturers as the price of raw jute is not just determined by input costs but
also by demand for it. The market prices are much higher than the remunerative MSP. The comparison
between MSP and market prices (TD-5 variety) is given below:
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2012-13 2013-14 2014-15 2015-16
MSP Market
Price
MSP Market
Price
MSP Market
Price
MSP Market
Price
July 2200 2661 2300 2636 2400 2636 2700 4180
Aug 2726 2526 2696 4034
Sept. 2661 2589 2709
Oct. 2469 2650 2857
Nov. 2393 2627 3011
Dec. 2354 2897 3071
Jan. 2465 2881 3158
Feb. 2685 2820 3248
Mar. 2886 2816 3252
Apr. 2901 2964 3305
May 2808 3139 3454
June 2638 3035 4047
4. PRODUCTION OF JUTE GOODS
India is the leading jute goods producing country in the world, accounting for about 70% of estimated world production. Bulk of the manufactured jute goods is predominantly being used in
packaging purposes in domestic market. The production of jute goods last year and current year is
given below:-(In ‖000‖ M.T.)
April-March Hessian Sacking C.B.C. Others Total
2014-15 211.3 901.8 3.0 151.2 1267.3
2015-16* 59.8 276.9 1.2 48.3 386.2
* upto April-July 2015
5. DOMESTIC CONSUMPTION OF JUTE GOODS
India is the major producer of jute products in the world primarily due to its vast domestic
market. Average domestic consumption out of total production has been around 90%. Domestic
consumption of jute goods during last year and current year is given in the following table:-
Qty:"000" M.T. Tonnes
April-March Hessian Sacking C.B.C. Others Total
2014-15 171.7 873.2 0.1 111.4 1156.2
2015-16* 56.0 252.5 0 34.2 342.7
* upto April-July 2015
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6. EXPORT PERFORMANCE
The Exports trends during the year 2014-15 and current year is as under:
(Quantity in ‗000‘ MT Value Rs. in Crores)
Apr-Mar 2014-15 2015-16*
Item Quantity Value Quantity Value
Hessian 80.2 769.5 2.2 15.7
Sacking 46.9 296.6 1.1 6.9
Yarn 23.6 138.7 4.0 25.6
JDP 0 508.6 0 43.9
Others 7.7 100.4 0.4 4.5
Total 161.7 1813.8 7.7 96.6
Source: National Jute Board (*) upto April 2015
7. IMPORT OF RAW JUTE AND JUTE GOODS
The Exports trends during the year 2014-15 and current year is as under:
(Quantity in‘000‘MT/Value in Rs Crores)(Apr-Mar) 2014-15 2015-16*
ITEM Quantity Value Quantity Value
Raw Jute 47.6 142.4 1.0 0.5
Jute Products 130.7 561.5 20.5 12.4
TOTAL 178.3 703.9 21.5 17.3
Source: National Jute Board (*) upto April-May 2015
8. IMPORTS OF JUTE GOODS FROM NEPAL AND BANGLADESH
It is reported that there is large scale import of cheap yarn, B-Twill fabric and sacking from
Bangladesh and Nepal which is seriously distorting the Indian market. Bangladesh provides exportincentives to its producer‘s which along with other factors such as low wages and power cost make
their products significantly cheaper than Indian products in Indian market. Bangladesh Government
offers a 7.5% cash subsidy on the export of jute bags, which coupled with cheaper labour, cheap power
and low capital cost makes imported jute bags from Bangladesh cheaper than bags manufactured in the
country.
Orders are issued from time to time under the JPM Act by the Government of India, Ministry of
Textiles, stipulating that jute packaging material for reserved commodities should be manufactured inIndia from raw jute produced in India‖. For securing compliances of the Orders issued under the JPM
Act, Notification bearing S.O. No. 698(E) dated 04-07-2002 had already been issued directing all
manufacturers / importers / processors / traders to mark / print/ brand or stitch a jute cloth/eco-friendly
cloth label printed with the words ―Bag made in – Country of Origin‖. Customs authority has also
been requested from time to time to ensure that import of jute goods takes place only after the
directions in the above Notifications are complied with.
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9. REGULATORY ORGANISATIONS IN JUTE SECTOR
(a) Subordinate Office under Ministry of Textiles
(i) Office of Jute Commissioner
The function and activities of the office of jute commissioner relate to (i) furnishing technical
advice to the Ministry regarding policy matter formulation pertaining to jute industry including
machinery development (ii) implementation of developmental activities through jute-related bodies of
the Ministry of Textiles like National Jute Board (NJB) particularly for promotion of jute handicraft
and jute hand-loom in decentralized sector and entrepreneurial skill in such sector and R&D
programmes through Indian Jute Industries‘ Research Association (IJIRA) and other Textile ResearchAssociations ,(iii) monitoring price behavior of both raw jute and jute goods and implementing
Minimum Support Price (MSP) operation through Jute Corporation of India to ensure MSP prices to
jute and mesta growers and (iv) market promotion, particularly for exploring markets of jute goods
both in domestic and export market. Efforts are also being made to encourage/promote jute related
activities in jute growing areas where such activities are inadequate and in-non jute growing states,
including North East States. In exercise of the power vested underSection 4 of the Jute and Jute Textile
Control Order, 2000, the Jute Commissioner issues Production Control Order (PCO) to jute mills for
supply of B.Twill bags on DGS&D account. These bags are required for packaging food grains
procured under MSP by different State food grain procuring agencies including FCI for distribution
through PDS. The Jute Commissioner also keeps the Ministry informed of the problems and status of
the jute sector on a regular and timely basis.Following the promulgation of RTI Act 2005, this office has appointed a Central Public
Information Officer. The Jute Commissioner is the Appellate Authority. Various information are
provided to different applicants under RTI Act. As per guidelines of the Department of
Administrative Reforms and Public Grievances, an officer has been deputed to handle the /public/staff
grievances in the office of the Jute Commissioner.
(b) Advisory Boards under Ministry of Textiles
(i) Jute Advisory Board
The Jute Advisory Board headed by Secretary (Textiles) advises the government generally onmatters pertaining to jute falling within the purview of Jute and Jute Textiles Control Order-2000
including production estimates of jute and mesta. The Board was reconstituted on 23-06-2014 for a
period of two years.
(c) Statutory Bodies under Ministry of Textiles
(i) National Jute Board
National Jute Board (NJB) has been constituted, as per National Jute Board Act, 2008
(12 of 2009), effective on and from 1 st
April, 2010 and erstwhile Jute Manufactures Development
Council and National Centre for Jute Diversification got subsumed into National Jute Board (NJB). In
exercise of the powers conferred by sub-section (3) of Section 1 of the National Jute Board Act, 2008
(12 of 2009), the Government of India, Ministry of Textiles (Jute Division), vide Notification: F.
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No.3/6/2007-Jute dated 30 th
March, 2010 has appointed the 1 st
April, 2010 as the date on and from
which the provisions of the National Jute Board Act, 2008 (12 of 2009) shall come into force.
The NJB is statutorily mandated to undertake measures to:-
• evolve an integrated approach to jute cultivation in the matters of formulation of
schemes, extension work, implementation and evaluation of schemes aimed at
increasing the yield of jute and improving the quality thereon ;
• promote production of better quality raw jute;
• enhance productivity of raw jute;
• promote or undertake arrangements for better marketing and stabilisation of the prices
of raw jute;
•
promote standardization of raw jute and jute products;• suggest norms of efficiency for jute industry with a view to eliminating waste, obtaining
optimum production, improving quality and reducing costs;
• propagate information useful to the growers of raw jute and manufacturers of jute
products;
• promote and undertake measures for quality control or raw jute and jute products;
• assist and encourage studies and research for improvement of processing, quality,
techniques of grading and packaging; of raw jute;
• promote or undertake surveys or studies aimed at collection and formulation of statistics
regarding raw jute and jute products;
• promote standardization of jute manufactures;
• promote the development of production of jute manufactures by increasing theefficiency and productivity of the jute industry;
• sponsor, assist, coordinate, encourage or undertake scientific, technological, economic
and marketing research pertaining to the jute sector;
• maintain and improve existing markets and to develop new markets within the country
and outside for jute manufactures and to devise marketing strategies in consonance with
the demand for such manufactures in the domestic and international markets;
• sponsor, assist, coordinate or encourage scientific, technological and economic research
in the matters related to materials, equipment, methods of production, product
development including discovery and development of new materials, equipment and
methods and improvements in those already in use in the jute industry;
• provide and create necessary infrastructural facilities and conditions conducive to thedevelopment of diversified jute products by way of assisting the entrepreneurs, artisans,
craftsman, designers, manufacturers, exporters, non-Governmental agencies in the
following manner, namely :--
- transfer of technology from research and development institutions and other
organisations in India and abroad;
- providing support services to the entrepreneurs for the implementation of their
projects including technical guidance and training;
- organizing entrepreneurial development programmes;
- planning and executing market promotion strategies including exhibitions,
demonstrations, media campaigns in India and abroad;
- providing financial assistance by way of subsidy or seed capital;
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Main Functions
1. To take up Price Support Operation on behalf of the Government as and when the raw jute
prices touch the level of the Minimum Support Price fixed by the Government of India without
any quantitative limit.
2. To undertake commercial operations for jute mills of NJMC on for other purpose as and when
required.
3. To undertake distribution of certified jute seeds under subsidy scheme of NJB and gradually
increase the quantity with an objective to make available certified jut seeds to farmers.
4. To conduct other extension activities like, demonstration of new retting techniques and display
of daily market rate by allocating centres under JTM MM III and NJB schemes for the benefit
of the jute growers.
5. To carry out the role of the implementing Agency for Mini Mission III and also provide
necessary support on activities of Mini Mission IV and other Mini Mission of the Jute
Technology Mission.
6. To plan and implement schemes under Corporate Social Responsibility.
Performance of Jute Corporation of India Ltd is highlighted below:
Particulars
Quantitative (Bales/Lakh):
2012-13 2013-14 2014-15
Provisional
Procurement of Raw Jute 3.63 1.90 0.74
Sales of Raw Jute 2.39 2.60 1.58
Closing Stock 1.74 1.06 0.20
Financial (Rs / Lakh)
Sale of Raw Jute 11135.57 12331.00 8303
Net Profit after Tax 1336.77 987.10 550
(ii) National Jute Manufactures Corporation Ltd. (NJMC), Kolkata
National Jute Manufactures Corporation Ltd. (N.J.M.C.) was registered and / or incorporated
on 3 rd
. June, 1980 as a wholly owned undertaking of the Government of India comprising of following
6 (six) Jute Mills viz National, Kinnison, Khardah, Alexandra, Union in West Bengal and Unit RBHM
in Katihar, Bihar. The main objectives of the Company are to carry on business of manufacturing of
Jute Goods (Sacking) for supply to food processing agencies of the Government. The Company was
referred to BIFR in the year 1992 due to its continuous loss since inception and erosion of net worth.
The operations of these mills were suspended in the year 2003-04. However, at the intervention of the
Ministry of Textiles BIFR has finally approved the revival proposal of the company in its meeting held
on 31.03.2011 to run its three mills ( Kinnison, Khardah in West Bengal and Unit:RBHM in Katihar,
Bihar) by NJMC itself out of six jute mills in view of cabinet decision on March, 19 th
2010 and 25 th
November 2010. The operations of these mills were suspended in the year 2003-04 and all the workers
and staff was given VRS as per the sanctioned scheme prior to this year. Full efforts were taken to
restore HT power line, repair of Factory sheds, godowns, offices and repair and renovation plant &
machineries and other infrastructure to start production during the year by engagement of contract
labour and it is happy to note that regular production has been started in all the above three mills
during the year. The NJMC is procuring raw jute from JCI and manufactures Sackings (Jute Bags)
which are being supplied to food procuring agencies of the Governments against the PCOs time to time
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issued by office of the Jute Commissioner. More than 2000 contract workers are getting the
employment where in their wages are time to time fixed, based on production and productivity, in
consultation with representatives of all the unions and paid through contractor in transparent manner
with PF, ESI and other benefits.
Revival of Jute Mills under the National Jute Manufactures Corporation (NJMC)
i) NJMC has six jute mills.
Mill with Location Total Land (Acres) Status
National—Sankrail, Howrah 63.34 closed
Alexandra—Jagaddal, North 24-
Parganas 52.68
closed
Union—Sealdah, Kolkata 14.13 closed
Khardah—Titagarh, North 24-
Parganas 86.56; Saleble-23.62
Under preparatory
maintenance
Kinnison—Titagarh, North 24-
Parganas 52.63; Saleable-2.43
Functional : under
production contract
RBHM—Katihar, Bihar 55.05: Saleable-30.35 Functional : under
production contract
ii) In terms of the revival scheme approved by the CCEA in November 2010, NJMC has
given VRS to its employees of all the six mills, at a cost of Rs.536 crores and has repaid
its other liabilities of Rs. 811 crores. Therefore, the advantage of NJMC is that it has no
employees on its rolls. At present, two of the three mills identified (Kinnison and
RBHM) are running on production contracts but have not reached the break-even point.
iii) A sum of Rs. 141 crores approved to meet the cash losses during the early years of its
revival period has been used up. Therefore, there is no scope for incurring further losses.
The NJMC revival plan approved by the Cabinet shall now depend upon the successful
operation of the 3 running mills (Kinnison, RBHM and Khardah) on the licensing
model, on payment of licence fees by the licencee. As mentioned earlier, an EOI has
been called for operation on the licensing model.
iv) The option of diversifying the production line from jute B Twill sacking to Jute
diversified products will require investment and managerial strength and is fraught with
risk as it is an emerging area.
v) Further, utilization of assets of the remaining three closed mills namely (Union,
National and Alexandra mill) where land measuring 130 acres in all requires to be
developed into feasible productive use such as a Textile Hub, Apparel Park or a Food
Processing Park for which a Transaction Advisor has been appointed (M/s Price Water House Coopers Ltd.) for preparing the road-map. This option is being resorted to as theexisting land use of the three closed mills is ‗industrial‘ which is required to be changed
to ‗commercial or residential‘, by the Government of West Bengal, without which it
may not be possible to sell land for alternate use.
vi) In all this, the support of Government of West Bengal for the development options of
the three closed mills is essential for expediting the process and also facilitating the sale
of surplus assets including land.
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vii) The matter is being pursued with Government of West Bengal for support on the sale of
surplus assets including land and with Ministry of Labour for formal closure of the
Mills. In interim period, options are being explored to operate the running mills with
profitability and for identifying appropriate modules for monetizing the land assets.
(iii) Birds Jute & Exports Ltd. (BJEL), a subsidiary of NJMC
Birds Jute & Exports Ltd (BJEL) a processing unit of Jute fabric was a subsidiary of Bird &
Co. established in 1904. Bharat Process & Mechanical Engineers Ltd.( BPMEL)under the Ministry of
Heavy Industry took over the assets on nationalization in 1980 and became a holder of 58.94% of BJEL‘s equity shares.. Thereafter the GoI decided to transfer shares of BJEL to NJMC in 1986.
BJEL operated as a processing unit for bleaching, dyeing & printing of jute and blended
fabrics. It was declared sick by BIFR u/s 3(1)(0) of Sick Industrial Companies (Special Provisions)
Act, 1985 (SICA) in the year 1999 due to continuous losses and negative net worth. Of late IDBI Bank
Ltd. was appointed as operating agency for preparation Rehabilitation Scheme under section 17(3) of
the said Act. Bird Jute & Exports Ltd. (BJEL), a subsidiary of National Jute Manufacturers
Corporation (NJMC) was referred to BIFR in June, 2004.
The company has a huge land asset measuring approximately 49 acres in one of the primelocations in Kolkata. Initially it was decided that the total surplus land would be sold off and the
revenue generated from this would be utilized for the revival of the organization. However the BIFR
objected to this idea and directed the company to identify the minimum area of land that would be
sufficient to generate the fund required (Rs. 137.88 crore) for revival and setting up of a Dying &
Bleaching Plant. After a detailed survey it was found out that the required fund for revival could be
generated by selling only 8.2 acres of land provided the land use is changed from industrial to
commercial land. However the Government of West Bengal is not allowing the change of land use.
The area where the land is located is infested with the anti-social elements and encroachments
of mill land are a regular affair. The local municipality is the main perpetrator of such incidents of
illegal encroachment of government land. The company has filed suit against the encroachers and Ms.Fox & Mandal, the solicitor firm, is representing BJEL.
BIFR has directed BJEL to include the state representative in the Assets Sale Committee for
sale of any asset including the scraps. Moreover land can only be sold after changing its nature from
industrial to commercial use as per the direction of BIFR. Both the issues fall within the domain of
Government of West Bengal. So far the state government has not responded in either of the issues.
The matter is being pursued with Government of West Bengal and BIFR.
(e) Other Organisations supported by Ministry of Textiles in Jute Sector
(i) Indian Jute Industries Research Association (IJIRA), Kolkata
Indian Jute Industries Research Association [IJIRA] was established in 1937, the first co-
operative R & D organisation rendering services to the Indian Jute Industry and Government Agencieswho are promoting Indian Jute in export and domestic market. Beginning as Indian Jute Mills‘
Association Research Institution (IJMARI) in 1937, the institute has grown over the years and moved
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to its current imposing premises in 1952. In the year 1966, IJMARI was renamed IJIRA andregistered under the West Bengal Societies Registration Act, 1961 as an autonomous
cooperative research organization. IJIRA is one of its only kinds of research associations in India
dealing with a fibre grown only in this part of the world and by virtue of this, it is unique.
IJIRA is headquartered in Kolkata, with its regional centres being at Cherthala (Kerala),
Vizianagram (Andhra Pradesh) and Guwahati (Assam). Guwahati Regional Centre also has the
Powerloom Service Centre co-located with it. There is a Testing Laboratory too at Shantipur (West
Bengal). Since its inception, IJIRA has, over the years, grown into a world class research institute on
jute.
Major Areas of Research are:
• Development of an eco-friendly substitute of JBO for jute processing.
• Light fast bleached & dyed jute product development.
• Jute Bamboo composites.
• Development of Technical Textiles such as wider braided jute fabric.
• Jute-Ramie blended finer yarns and fabric development.
• Energy efficient green sizing technology for jute yarns.
• Development of Aroma based home textiles.
• Multifunctional ceramic based nano-finishing outdoor textiles by sol-gel-methods.
• Development of Low Cost Jute Bags for Foodgrains and Sugar.• Quality Assurance for food grade jute products.
In additional to rendering various technical services to Jute Sector, IJIRA is presently
involved in Jute Technology Mission Projects DDS 7.1 and DDS 6.4 projects, promotion and
techno-marketing of jute geo-textiles in association with National Jute Board, quality assurance of
food grade jute products and consultancy.
(ii) Institute of Jute Technology (IJT), Kolkata
The Institute of Jute Technology (IJT), established in 1947 and jointly founded by University of
Calcutta and Indian Jute Mills' Association with the main object of imparting knowledge of jutetechnology and training of students, has since been running as an autonomous educational institute.
The Institute at present offers a regular 4-year B.Tech (Jute & Fiber Technology) Degree Course in line
with the all India pattern for engineering degree courses. The degree is being awarded by the University
of Calcutta. Institute has recently introduced a regular 4 semesters M.Tech. Course in Textile
Technology (Technical Textiles) under the University of Calcutta. The institute also offers two regular
courses, popularly known as Junior Level Supervisory (JLS) courses, one on spinning and other on
weaving, each with a duration of 3 months. These courses are meant for the persons working in jute
mills in supervisory capacity for a long time but do not have any formal technical education.
The Institute not only organizes training programmes for Jute Mill Sector but also caters to the
need for HRD of the decentralized jute sector which is gradually occupying an important role in thearea of jute diversification. The Institute of also offers testing, inspection and technical services both to
the centralised and decentralized sectors of the jute and allied Industries. The faculty members of the
institute also carry out in-house and sponsored applied research projects.
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(iii) Central Research Institute for Jute Allied Fibres (CRIJAF)
http://www.ijtindia.org/testing.htm
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The following are the mandate of CRIJAF:• Improvement of jute (C. capsularis and C. olitorius) and allied fibre crops like mesta (H.
cannabinus and H.sabdariffa), sunnhemp, (Crotalaria juncea), rame (Boehmeria nivea) sisal
(Agave sisalana) and flax (Linum usitatissimum) for yield and quality.
• Improvement of jute and allied fibre crops for biotic and abiotic stresses.
• Development of economically viable and sustainable production technology and cropping
systems with jute and allied fibre crops.
• Transfer of technology and human resource development in relation to jute and allied fibre
crops.
•
Development of proper post-harvest technology for improving the quality of fibre.
(iv) National Institute for Research in Jute and Fibre Technology (NIRJFT)
NIRJAFT is under ICAR, Government of India devoted to technological research on jute &
allied fibres. There are four full fledged divisions in the institute, namely, Quality Evaluation and
Improvement Division, Mechanical Processing Division, Chemical & Biochemical processing division
and Transfer of Technology Division.
10. INCENTIVES TO JUTE SECTOR
(a) Jute Packaging Materials (Compulsory use in packing commodities) Act, 1987:-
Jute Packaging Material ( Compulsory Use in Packaging Commodities ) Act, 1987 (JPM Act)
has been enacted to provide for the compulsory use of jute packaging material in the supply and
distribution of certain commodities in the interests of production of raw jute and jute packaging
material, and of persons engaged in the production thereof, and for matters connected therewith.
Clause 4 (1) of the Jute Packaging Material (Compulsory Use in Packaging Commodities) Act, 1987
empowers the Central Government to constitute Standing Advisory Committee consisting of such
persons as have, in the opinion of that Government, the necessary expertise to give advice in the matter
of determining the commodity or class of commodities or percentages thereof in respect of which jute
packaging material shall be used in their packing.
Central Government after considering the recommendations of SAC, may from time to time,
issue orders under section 3(1) of the JPM Act for compulsory use of jute packaging material or certain
commodity or class of commodities or percentages thereof, if it is satisfied that it is necessary to do so
in the interest of production of raw jute and jute packaging material. Based upon the demand & supply
position of raw jute and jute Goods, the Government prescribes reservation of commodities to be
packed in Jute. The Government attempts to provide as much reservation as possible to utilize the jute
crop that is produced in the country, without creating the bottle-neck in the supply-distribution chain of
the commodities.
For the jute year 2014-15, Ministry of Textiles issued Notification S.O. 527(E) dated13.02.2015 stipulating that minimum of 90% of foodgrain and minimum of 20% of sugar to be
compulsorily packed in jute packaging materials for the Jute year 2014-15, valid upto 30 th
June, 2015,
which has been extended upto 31 st
December, 2015.
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The level of reservation recommended by the Government since January 2014 has been as
follows:-
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Mandatory Jute Packaging Orders issued under JPM Act, 1987
Order date Year Sugar Foodgrains
31.01.2014 2013-14 20% 90%
Ministry of Textiles vide Order No. 1620(E) dated 16.06.2015 has delegated powers under
Section 6,7 & 8 of the JPM Act to amongst others, District Magistrate or Collector or Deputy
Commissioner of concerned District and Sub-Divisional Magistrates or Sub-Divisional Officers of
concerned Sub-Division for an effective implementation of the Orders issued under the JPM Act
stipulating that certain percentage of foodgrains and sugar are required to be packed compulsorily in jute bags.
(b) New Initiatives:-
• Possibilities are being explored for large scale use of jute in making paper and composites.
• The use of Jute Geo-textiles is being promoted.
• R&D is being promoted for the use of jute in different sectors like automobiles, roads,
construction etc.• New retting technology have been developed and trials of the same is being done.
• Efforts are being done to modernize the jute industry.
• Efforts are being done to explore new uses of jute fibre on mass scale through National
Institute of Design (NID).• The Jute Diversified Products (JDPs) are being promoted for domestic consumption as well
as for exports.
(c) Jute Technology Mission:
The Jute Technology Mission has been a major component of the National Jute Policy and is
the vehicle for implementation of multifarious programmes in the jute sector, both present and future.
Pursuant to the National Jute Policy, 2005, the CCEA approved the Jute Technology Mission (2006-07
to 2010-11) in its meeting held on 02.6.2006 with a total outlay of Rs.355.55 crore. The Jute
Technology Mission comprised four Mini Missions, to be completed during 2006-07 to 2010-11.
Subsequently, the Cabinet Committee on Economic Affairs (CCEA) has approved the
extension of the implementation period of the ―Jute Technology Mission (2006-07 to 2010-11)‖ by two
years beyond 2010-11(i.e. 2006-07 to 2012-13).
Since inception of the scheme, 11 market yards developed and 28 Departmental Purchase
Centre (DPC) & 43 Retting Tanks were constructed. A total investment of Rs.518.61 crore for
Modernization and Upgradation of Technology in Jute Mills was made under the Capital Subsidy
Scheme in 120 units all over India. Productivity improvement & TQM facilitation exercises were
undertaken and implemented in 12 mills as processes for good governance. 21 markets driven R&D
Studies for development of new processes and new diversified products were conducted by reputed
institutions of India. Training was imparted to 24131 workers in 39 jute mills for sustainable humanresource development. Under schemes for assisting NGOs and Women Self Help Groups (WSHGs) in
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developing jute diversified products, 57 NGOs in 428 clusters involving 2106 Women Self HelpGroups in 121 districts of 19 States benefitted 28,170 artisans. Moreover, 1971 training programmes
benefiting 37750 artisans were organized and 828 JDP-SHG units were setup. Four Jute Parks were
established with 27 manufacturing units.
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(d) Jute Diversified Products
The jute industry is predominantly leaning on jute sacking to the detriment of the industry as is
evident from the long-standing absence of diversification and modernization. There is a need for
enabling the jute sector to develop of various other diversified products. While there has been a drop
in the overall export of Jute products by 15% during the year 2014-15, there has been a growth of 5%
in the Jute Diversified Products (JDPs), indicating a rising global demand for such products. It is
necessary to produce and market different JDPs such as jute shopping bags, Jute floor coverings, Jute
based home furnishings & wall coverings, and Jute based handicrafts. The promotion of diversification
will help in making the jute industry less dependent on state support and will also ensure that theindustry becomes competitive and self-sustaining so that the opportunities prevailing in the global and
domestic markets are tapped successfully.
Steps have been taken for promoting better agronomic practices in jute farming, promotion of
the Jute Diversified Products (JDPs) and their marketing, support for technological up-gradation of jute
mills, etc. Steps have also been taken to promote JDP clusters operated by Women Self Help Groups
at block level formed under the National Rural Livelihood Mission (NRLM) by providing them
support on forward and backward linkages – such as design, training, raw material and common
facility infrastructure. In pursuance of this, the Ministry has signed an MOU with the National
Institute of Design (NID) for facilitating design of Jute Diversified Products. Also, Jute Common
Facility Centres (CFCs) scheme has been launched on 1.9.2015 for providing avenues for valueaddition, production, quality assurance through construction facility, direct support to members,
integrated design, product development, training and market development etc. Five Common Facility
Centre (CFC) are sanctioned at the five locations in West Bengal (3), Assam (1) and Bihar (1) in major
jute growing district. An amount of Rs.10 crores has been allocated for 2015-16. Operation of the
CFC shall be transferred to a Cooperative Society or Women Self Help Groups (WSHGs) in due
course.
For promotion of large scale use of Jute Geotextiles for control of erosion, road construction,
river embankments and in slope stabilization, major Government Departments and State Governments
are advised to promote use of jute as geo-textiles. Special scheme for promotion of Geo-Textiles has
been launched in the North Eastern States on 24.3.2015 with outlay of Rs.427 crores.
(e) Project Jute-ICARE (Jute: Improved Cultivation and Advanced Retting Exercise)
The project Jute-ICARE (Jute: Improved Cultivation and Advanced Retting Exercise) has been
launched to support the small and marginal jute growers with adequate pre and post harvesting
operations in select blocks, where jute cultivation is popular with a view to improving the income of
farmers through improvement in yield and the quality of the fibres. Under this project jute growers
will be provided with 100% certified seeds. The Jute Corporation of India (JCI), Central Research
Institute for jute and Allied Fibres (CRIJAF), an R&D organization under the Ministry of Agriculture
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and National Jute Board (NJB) are jointly implementing the project on a pilot basis. Training and Seed
Distribution work have been started in three blocks in West Bengal.
f) Schemes for the welfare of the Jute Mills workers
National Jute Board (NJB) implements the following schemes for the welfare of the Jute Mills
workers:-
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i) Workers’ Welfare Scheme - Sanitation facilities for Mill Sector
This is a Non-Plan Scheme implemented through cess funds of the National Jute
Board. The scheme provides hygienic sanitary facilities for mill workers and their
families, first in the mill quarters and in the second stage in the working areas. Sanitary
facilities include designed sanitary blocks with toilet facilities for men and women,
wash basins, sewage, etc. In order to speed up the process of construction are allotted to
third-party tie-up with M/s Sulabh International or such other reputed organizations
especially those agencies which may have a government dispensation exempting themfrom participation in tender. The concerned mill first incurs the expenditure and
National Jute Board thereafter reimburses 90% of the costs subject to a maximum
reimbursement of Rs 40.00 lakh. 37 Toilet blocks in 30 jute mills were constructed.
Fund utilisation & budget: (Rs. Lakhs):-
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (BE)
73.79 100.07 198.56 305.84 386.53 400.00
ii) Scheme to provide Incentives to successful girls students of Jute Mill workers in
Secondary & Higher Secondary level through Bank A/c
For providing better working conditions and provisions and improvement of amenities
and incentives for workers engaged in the jute industry and to extend support to theworkers‘ family towards education of their girl children, a scholarship scheme for
educational support has been introduced (non- plan scheme), which will not only
motivate the family for acquiring higher stages of education by their girl children but
also have an impact on the economy of the industry. Scholarships to the qualified girl
children are paid as follows:
• On qualifying Secondary Education : Rs. 5,000/-
• On qualifying Higher Secondary Education : Rs.10,000/-
The scheme is applicable to all jute goods manufacturing units throughout the country
paying cess. Support has been provided to 2963 girl students of Jute Mill workers for
being successful in secondary and higher secondary examinations.
From 2015-16, the following scholarships will also be extended:-
On qualifying Graduation (for boys & girls) Rs. 15,000/-
On qualifying Post Graduation Rs. 20,000/-
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For pursuing Professional (Engg, Technical, Medical,
Management, CA, CS, ICWAI courses) in Govt. Institutions
Annual Tuition fees
For pursuing Professional courses likeJute / Textile Engg
/Technology (from Private Inst.)
Annual Tuition fees
Fund utilisation & budget: (Rs. lakhs)
2013-14 2014-15 2015-16 (BE)
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122.30 144.55 200.00
11. Issues taken up with Other Ministries/Departments and State Governments through
various communications.
(a) As the jute industry is predominantly located in West Bengal, through various
communications, the Ministry of Textiles has taken up the following issues with the Chief
Secretary/Chief Minister of Government of West Bengal:
• Effective implementation of Jute Packaging Material Act, 1987 (JPM Act) for the
packaging of rice and paddy in Bengal to generate additional demand for jute products. Introduce mandatory packing of potatoes and other vegetables in the
state in jute hessian bags.
• Promote use of jute as geo-textiles in Pradhan Mantri Gram Sadak Yojana
(PMGSY) roads, district roads and State Highways, in river embankments and in
slop stabilization.
• Evolve better agronomic practices in cultivation of jute.
• Extend support from Government of West Bengal for support on the sale of
surplus assets including land and with Ministry of Labour for formal closure of
the Mills. In interim period, option are being explored to operate the running mills
with profitability and for identifying appropriate modules for monetizing the land
assets.• Extend support of the Government of West Bengal for implementation of the
revival scheme, changing land use nature from industrial to commercial as per the
direction of BIFR. So far the state government has not responded in either of the
issues. The matter is being pursued with Government of West Bengal and BIFR.
(b) Railway Board has been requested to consider using jute geo-textile on larger scale for
the stabilization of slopes and other uses in the railway construction.
(c) All State Governments has been requested to promote use of jute as geo-textiles in
Pradhan Mantri Gram Sadak Yojana (PMGSY) roads, district roads and State Highways,
in river embankments and in slop stabilization.
(d) Ministry of Home Affairs, Ministry of Water Resources and Ministry of Rural
Development has been requested to organize a workshop on use of jute as geo-textiles invarious projects under their respective Ministries. Ministry of Water Resource has
informed that Central Board of Irrigation and Power has organized workshop/training on
use of geo-textiles materials in infrastructural project and have come up with a
compendium on geo-textiles and geo-synthetics.
(e) Several review meetings at the level of Hon‘ble Minister of State for Textiles (I/C) and
Secretary (Textiles) were held for the development and promotion of jute industry.
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Several communications have also been sent to the State Government of West Bengal to
pursue the above issues.
***
(Data Source : Jute Section, Updated as on 30.09.2015)
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